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project management concepts

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This chapter introduces key concepts of project management including defining projects and differentiating them from operations. It describes the project life cycle and project management life cycle. It identifies important stakeholders and discusses how organizational structure, such as functional, matrix, and projectized, can influence a project. The chapter aims to explain these fundamental concepts and how they relate to effective project management.

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Chapter 1: Project Management Concepts  What Is a Project?  What Is Project Management?  Life Cycles of Projects and Project Management  Project Stakeholders  Organizational Structure and Its Influence
Learning Objectives: After completing this chapter, you will be able to:  Differentiate between projects and operational work  Describe the main concepts of project management  Explain the differences between the project life cycle and the project management life cycle  Identify project stakeholders and their influence  Compare the different types of organizational structures
project management concepts
What Is a Project? A project is: Temporary It has a definite beginning and a definite, measurable end. Unique The project is undertaking something that has not been undertaken previously. At least some aspect is unique. Projects embrace the concept of progressive elaboration; that is, as time goes by, you learn more about the project as you do the work of the project.
What Is a Project? Projects vs. Ongoing Operations According to the PMBOK Guide: Projects : Temporary, unique; embrace progressive elaboration Operations : Ongoing, repetitive; do not fit all the criteria of a project
project management concepts
What Is Project Management? Overlapping Disciplines Project Management environment skills Application knowledge Body of knowledge Interpersonal skills
Project Management Components Portfolios, Programs, and Subprojects Program Project A Project B Subproject Subproject Subproject Subproject Portfolio Program Project A Project B Subproject Subproject Subproject Subproject
Project Management Components Project Management Office
What Is Project Management? Project Management System
project management concepts
Life Cycles of Projects and Project Management Project Life Cycle vs. Project Management Life Cycle Software development project Design Code Test Train Implement Project management life cycle Project life cycle Initiating Initiating Initiating Initiating Initiating Planning Planning Planning Planning Planning Executing Executing Executing Executing Executing Monitoring & Monitoring & Monitoring & Monitoring & Monitoring & Controlling Controlling Controlling Controlling Controlling Closing Closing Closing Closing Closing
Life Cycles of Projects and Project Management Project Life Cycle vs. Product Life Cycle Product life cycle stages: Introduction and creation Growth Maturity Decline Projects run in the context of the product life cycle. Many projects can be undertaken throughout the product life cycle.
Project Stakeholders It is important to identify stakeholders. Who is or should be involved? Who is external to the organization? Who has “bought in” and who hasn’t? Who can influence the project’s performance or outcome?
Organizational Structure and Its Influence Functional Weak Matrix Strong Projectized Functional Weak Matrix Strong Projectized
Organizational Structure and Its Influence Functional Organization Power resides with the functional manager. CEO Functional Functional Functional Functional Functional manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
Functional Organizations Advantages and Disadvantages of Functional Structures Advantages Familiar structure One-supervisor reporting structure Clearly defined career paths Employees as experts Disadvantages Employee’s job difficult to change Need to fight for resources and project priority Functional manager responsible for performance reviews and promotions Competition for resources Little or no project manager authority No clearly defined project management career path
Organizational Structure and Its Influence Matrix Organization Two bosses: Power resides with both functional manager and the CEO project manager. Functional manager Staff Staff Project manager Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff *Darkened boxes represent staff working on project activities.
Matrix Organization Advantages and Disadvantages of Matrix Structures Advantages Continued visibility of objectives Increased support from functional managers Increased control by project manager Improved flexibility Continued job after project completion Multiple input on performance of team members Disadvantages Multiple bosses Added complexity Need for additional policies and procedures Differing priorities or objectives
Organizational Structure and Its Influence Projectized Organization Power resides with project manager. CEO Project Project Project Project Project manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
Projectized Organization Advantages and Disadvantages of Projectized Structures Advantages Clear focus on project Project loyalty Efficient project organization Efficient project communication Disadvantages Job over at project completion Less efficient use of resources Duplicated job functions and facilities
The Structure of Organizations and Its Influence Summary Project Aspect Organization Structure Functional Weak Matrix Matrix Balanced Matrix Strong Projectized Matrix Project Manager Little or Authority none Resource Little or Availability none Project Budget Functional Controlled By manager Limited Limited Functional manager Low to moderate Low to moderate Mixed Moderate to High to high almost total Moderate to High to high almost total Project Project manager manager Role of the Project Manager Part-time Part-time Full-time Full-time Full-time Project Management Part-time Part-time Part-time Full-time Full-time Administrative Staff *Based on the PMBOK Guide, Fourth Edition.
Knowledge Check Concepts You Should Know  Important terms:  Project: Temporary endeavor undertaken to produce a unique product, service, or result  Subproject: Component of project identified by subdividing the project into smaller, more manageable pieces  Operations: Ongoing, repetitive work of the organization  Project management: Application of knowledge, skills, tools and techniques to project work to fulfill project requirements  Program: Interrelated group of projects and other work that are managed together to achieve efficiencies not available by managing them separately  Portfolio: Group of programs, projects, and other work managed together to meet strategic business objectives
Knowledge Check Concepts You Should Know (cont.)  Important terms (cont.):  Project management system: Aggregated collection of processes, tools, techniques, methods, procedures, and resources assembled to manage projects  Project stakeholder: Any individual or group that meets one or more of the following requirements:  Is involved in the project  Has a positive or negative interest in the project  Can exert influence over project performance or results
Knowledge Check Concepts You Should Know (cont.)  Triple constraint model:  All projects are constrained by time, cost (or resources), and scope.  Changes to one set of constraints affect remaining areas of constraint.  Project management should be focused on identifying and managing the balance among the areas of constraint.  Three life cycles:  Product life cycle: Sequence of phases that a product goes through between conception and retirement  Project life cycle: Sequence of phases of project work required to meet project requirements  Project management life cycle: Sequence of phases in the management of the work of the project (remember IPECaC)
Knowledge Check Concepts You Should Know (cont.)  Projects generally occur within the larger product or service life cycle and often occur as the means of transitioning a product from one life cycle phase to another.  Successful project managers make connections between the following areas:  Project Management Body of Knowledge  Application area standards and regulations  Organizational environment in which the project takes place  General management skills  Interpersonal skills
Knowledge Check Concepts You Should Know (cont.)  The PMBOK Guide identifies four general organizational types:  Functional organization: Hierarchical organization in which employees are grouped based on their specialized skill set and have a single, clear boss.  Matrix organization: Structure in which the functional manager and the project manager share responsibility for determining priorities and directing the work of staff. The PMBOK Guide classifies matrix organizations as weak, balanced, or strong.  Projectized organization: Organization in which the project manager has total authority to assign priorities, apply resources, and direct the work of project staff.  Composite organization: Organization in which projects can be organized and managed in functional, matrix, or projectized ways depending on the needs of the project.
project management concepts

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project management concepts

  • 1. Chapter 1: Project Management Concepts  What Is a Project?  What Is Project Management?  Life Cycles of Projects and Project Management  Project Stakeholders  Organizational Structure and Its Influence
  • 2. Learning Objectives: After completing this chapter, you will be able to:  Differentiate between projects and operational work  Describe the main concepts of project management  Explain the differences between the project life cycle and the project management life cycle  Identify project stakeholders and their influence  Compare the different types of organizational structures
  • 4. What Is a Project? A project is: Temporary It has a definite beginning and a definite, measurable end. Unique The project is undertaking something that has not been undertaken previously. At least some aspect is unique. Projects embrace the concept of progressive elaboration; that is, as time goes by, you learn more about the project as you do the work of the project.
  • 5. What Is a Project? Projects vs. Ongoing Operations According to the PMBOK Guide: Projects : Temporary, unique; embrace progressive elaboration Operations : Ongoing, repetitive; do not fit all the criteria of a project
  • 7. What Is Project Management? Overlapping Disciplines Project Management environment skills Application knowledge Body of knowledge Interpersonal skills
  • 8. Project Management Components Portfolios, Programs, and Subprojects Program Project A Project B Subproject Subproject Subproject Subproject Portfolio Program Project A Project B Subproject Subproject Subproject Subproject
  • 9. Project Management Components Project Management Office
  • 10. What Is Project Management? Project Management System
  • 12. Life Cycles of Projects and Project Management Project Life Cycle vs. Project Management Life Cycle Software development project Design Code Test Train Implement Project management life cycle Project life cycle Initiating Initiating Initiating Initiating Initiating Planning Planning Planning Planning Planning Executing Executing Executing Executing Executing Monitoring & Monitoring & Monitoring & Monitoring & Monitoring & Controlling Controlling Controlling Controlling Controlling Closing Closing Closing Closing Closing
  • 13. Life Cycles of Projects and Project Management Project Life Cycle vs. Product Life Cycle Product life cycle stages: Introduction and creation Growth Maturity Decline Projects run in the context of the product life cycle. Many projects can be undertaken throughout the product life cycle.
  • 14. Project Stakeholders It is important to identify stakeholders. Who is or should be involved? Who is external to the organization? Who has “bought in” and who hasn’t? Who can influence the project’s performance or outcome?
  • 15. Organizational Structure and Its Influence Functional Weak Matrix Strong Projectized Functional Weak Matrix Strong Projectized
  • 16. Organizational Structure and Its Influence Functional Organization Power resides with the functional manager. CEO Functional Functional Functional Functional Functional manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 17. Functional Organizations Advantages and Disadvantages of Functional Structures Advantages Familiar structure One-supervisor reporting structure Clearly defined career paths Employees as experts Disadvantages Employee’s job difficult to change Need to fight for resources and project priority Functional manager responsible for performance reviews and promotions Competition for resources Little or no project manager authority No clearly defined project management career path
  • 18. Organizational Structure and Its Influence Matrix Organization Two bosses: Power resides with both functional manager and the CEO project manager. Functional manager Staff Staff Project manager Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff Functional manager Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 19. Matrix Organization Advantages and Disadvantages of Matrix Structures Advantages Continued visibility of objectives Increased support from functional managers Increased control by project manager Improved flexibility Continued job after project completion Multiple input on performance of team members Disadvantages Multiple bosses Added complexity Need for additional policies and procedures Differing priorities or objectives
  • 20. Organizational Structure and Its Influence Projectized Organization Power resides with project manager. CEO Project Project Project Project Project manager manager manager manager manager Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff Staff *Darkened boxes represent staff working on project activities.
  • 21. Projectized Organization Advantages and Disadvantages of Projectized Structures Advantages Clear focus on project Project loyalty Efficient project organization Efficient project communication Disadvantages Job over at project completion Less efficient use of resources Duplicated job functions and facilities
  • 22. The Structure of Organizations and Its Influence Summary Project Aspect Organization Structure Functional Weak Matrix Matrix Balanced Matrix Strong Projectized Matrix Project Manager Little or Authority none Resource Little or Availability none Project Budget Functional Controlled By manager Limited Limited Functional manager Low to moderate Low to moderate Mixed Moderate to High to high almost total Moderate to High to high almost total Project Project manager manager Role of the Project Manager Part-time Part-time Full-time Full-time Full-time Project Management Part-time Part-time Part-time Full-time Full-time Administrative Staff *Based on the PMBOK Guide, Fourth Edition.
  • 23. Knowledge Check Concepts You Should Know  Important terms:  Project: Temporary endeavor undertaken to produce a unique product, service, or result  Subproject: Component of project identified by subdividing the project into smaller, more manageable pieces  Operations: Ongoing, repetitive work of the organization  Project management: Application of knowledge, skills, tools and techniques to project work to fulfill project requirements  Program: Interrelated group of projects and other work that are managed together to achieve efficiencies not available by managing them separately  Portfolio: Group of programs, projects, and other work managed together to meet strategic business objectives
  • 24. Knowledge Check Concepts You Should Know (cont.)  Important terms (cont.):  Project management system: Aggregated collection of processes, tools, techniques, methods, procedures, and resources assembled to manage projects  Project stakeholder: Any individual or group that meets one or more of the following requirements:  Is involved in the project  Has a positive or negative interest in the project  Can exert influence over project performance or results
  • 25. Knowledge Check Concepts You Should Know (cont.)  Triple constraint model:  All projects are constrained by time, cost (or resources), and scope.  Changes to one set of constraints affect remaining areas of constraint.  Project management should be focused on identifying and managing the balance among the areas of constraint.  Three life cycles:  Product life cycle: Sequence of phases that a product goes through between conception and retirement  Project life cycle: Sequence of phases of project work required to meet project requirements  Project management life cycle: Sequence of phases in the management of the work of the project (remember IPECaC)
  • 26. Knowledge Check Concepts You Should Know (cont.)  Projects generally occur within the larger product or service life cycle and often occur as the means of transitioning a product from one life cycle phase to another.  Successful project managers make connections between the following areas:  Project Management Body of Knowledge  Application area standards and regulations  Organizational environment in which the project takes place  General management skills  Interpersonal skills
  • 27. Knowledge Check Concepts You Should Know (cont.)  The PMBOK Guide identifies four general organizational types:  Functional organization: Hierarchical organization in which employees are grouped based on their specialized skill set and have a single, clear boss.  Matrix organization: Structure in which the functional manager and the project manager share responsibility for determining priorities and directing the work of staff. The PMBOK Guide classifies matrix organizations as weak, balanced, or strong.  Projectized organization: Organization in which the project manager has total authority to assign priorities, apply resources, and direct the work of project staff.  Composite organization: Organization in which projects can be organized and managed in functional, matrix, or projectized ways depending on the needs of the project.